Bank of America Merrill Lynch said it created a clearing service for over-the-counter derivatives.

The securities business of Bank of America said it was forming a Global Futures and Derivatives Clearing Services (GFDCS) group ”in anticipation of the substantial growth in OTC derivatives clearing.”

The Dodd-Frank Wall Street Reform Act calls for the bulk of credit default swaps, for instance, to be turned into standardized products that can be traded on electronic exchanges and “swap execution facilities.” The bill requires the products to pass through clearing houses.

Bank of America also said the creation of the unit would meet “ the tremendous demand for education and related services from the company’s institutional investor and corporate clients’’ that exists.

The new business will be based on BofA’s existing futures business, which provides clearing services and access to futures exchanges.

The group will operate as part of BofA Merrill Lynch’s Global Markets Financing and Futures operation, which includes prime brokerage and services.

Bob Burke and Gonzalo Chocano have been named co-heads of the group. They will report to Denis Manelski and Syl Chackman, co-heads of GMF&F.

“Establishing an industry-leading derivatives clearing service is a top priority for our Global Markets business. Every client we serve will be impacted by the financial reforms transforming the OTC derivatives market,” said Tom Montag, president of Global Banking and Markets

The launch took a year of planning, the company said.